Zahid’s reluctance to cooperate raises questions

Defence Minister Ahmad Zahid Hamidi’s declaration that the French courts cannot summon him for the ongoing inquiry into Malaysia’s purchase of French submarines only shows how ‘fearful’ he is.

It also raises concerns about Zahid’s and Prime Minister Najib Abdul Razak’s involvement in the matter, PKR-linked NGO Jingga 13 said today.

The reluctance of Najib and Zahid to attend the inquiry raises awkward questions among the people, as though they were attempting to hide something, Jingga 13 chief coordinator Fariz Musa said in a statement.

“Jingga 13 urges (Najib and Zahid) not to fear attending the inquiry if they are not guilty and are not involved in the scandal,” Fariz (right) said, describing the issue as important and requiring the commitment of the two ministers.

“What is being hidden by them?” he asked.

The statement comes in response to Zahid’s insistence yesterday that the French courts have no jurisdiction to summon Malaysians for the inquiry, as Malaysians are not subject to French laws.

However, lawyer Joseph Brehem, who is assisting in the inquiry in Paris, today rebutted Zahid’s claim and said French courts have jurisdiction over any person involved in a matter being investigated by the court, French or not.

Zahid is named in the list of seven witnesses proposed by human rights NGO Suaram for the French inquiry into kickbacks paid for the purchase of the Scorpene submarines – which are illegal in France – and which was accepted by French investigating judge Roger Le Loire.

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Zahid’s reluctance to cooperate raises questions
May 16, 2012

Paris Papers: Perimekar just a travel agency

COMMENT Having had the privilege of looking at some of the Paris Papers on the Scorpene submarine scandal recently, it behoves me to give anxious landlubbers a ‘hitchhiker’s guide’ to this convoluted mesh of payments that have gone on to grease this most expensive (more than RM7 billion) arms purchase in Malaysia’s history.

Since Suaram lodged its complaint with the French courts for a judicial review of the Scorpene contract in November 2009, the French prosecutors have certainly been busy with their investigations.

They have interviewed officials in the French state-owned defence company, DCN, and related companies such as Thales as well as officials in the French Defence Ministry.

They have looked into bank vaults and scrutinised contracts, memoranda of understanding, memoranda of intent, invoices, bank accounts of various people including Abdul Razak Baginda (left in photo), the former close confidant of Prime Minister Najib Razak at the centre of the controversy.

There are also some rather telling internal confidential reports of DCN and the French Defence Ministry.

So far, the Malaysian Defence Ministry has told Parliament that:

The cost of two Scorpene submarines together with logistic support and training was close to 1 billion euros (RM4 billion).

Payment to Perimekar, an obscure company owned by Razak Baginda, for “coordination services” was 114 million euros (RM450 million).

Malaysian taxpayers will still need to pay even more for maintenance services, support and test equipment, missiles and torpedoes, infrastructure for the submarine base, training of crew, etc. The total bill for these two submarines will be in excess of RM7 billion.

But are these two the only transactions in a sordid affair that has claimed the life of a fair Mongolian lass named Altantuya Shaariibuu?

Perimeker’s price ‘inflated’

Negotiations on the submarine contract started in 1999. At the time, French defence giant DCN had this view of Perimekar:

“The amount to be paid to Perimekar is overvalued. It is not worth it… They are never more than a travel agency… The price is inflated and their support function is very vague… Yes, that company created unfounded wealth for its shareholders.”

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Paris Papers: Perimekar just a travel agency
Kua Kia Soong
May 5, 2012 – Malaysiakini

Scorpenes deal: Najib’s US$1b ‘condition’

A document indicates that Najib, the then defence minister, sought a US$1billion ‘condition’ for a meeting between him and DCNI.

KUALA LUMPUR: Investigations by French prosecutors have found a document indicating that the then defence minister, Najib Tun Razak, had sought a US$1 billion “condition” for a meeting between him and DCNI, said rights group Suaram.

The US$1 billion was for Perimekar Sdn Bhd’s “stay in France”.

At a press conference today, Suaram — which is the complainant in an ongoing French judicial probe into the controversial Scorpene submarines deal — revealed contents from investigation papers which had been made available to the NGO.

“We were really shocked to find that one of the documents contained Najib’s name and (he) had placed a condition in writing in France, that DCNS (the shipbuilding company that sold the submarines to Malaysia) would need to pay a maximum sum of US$1 bilion to Perimekar for their stay in France,” said Suaram’s Cynthia Gabriel.

This, she said, was revealed in a note taxed from a representative from Thales International Asia (which brokered the deal on behalf of arms manufacturer DCNS — the parent company of DCNI — with Perimekar and the Malaysian government) Francois Dupont entitled “Malaysia/Submarine Project” to his bosses.

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Scorpenes deal: Najib’s US$1b ‘condition’
May 3, 2012 – FMT

‘US$30mil held on trust for Musa Aman’

Whistleblower website Sarawak Report has revealed more documents purportedly from the Hong Kong Independent Commission Against Corruption (ICAC), claiming that a Sabah lawyer has a Swiss bank account holding close to US$30 million on trust for Sabah Chief Minister Musa Aman.

In its latest posting, the website claimed that evidence from the Hong Kong authorities shows that the account was opened in the lawyer’s name with the Swiss Bank UBS in Hong Kong. This is allegedly operating under written instructions that the money is to be held on trust for Musa.

“A letter dated 25th May 2007, and now in the possession of the ICAC, stated the account should ‘hold (the money) on trust for Aman,” the report states.

“Investigators noted that on 31st May 2008, that account contained US$29.6 million!”

The website based its allegation on a flow chart said to be compiled by the ICAC, showing a money trail leading from timber kickbacks to Musa’s personal bank account with UBS in Zurich.

The chart tags the lawyer’s bank account with the words ‘Hold on trust for Aman’.

It illustrates how millions in Euro and in US, Hong Kong and Singapore dollars flowed from certain companies into accounts managed by Sabah timber trader Michael Chia and his nominees in Hong Kong, to a number of British Virgin Island companies and then to the lawyer’s account.

The accumulated money was then passed into an account in Zurich in Musa’s name, according to the chart.

The website claimed that it has copies of numerous bank statements that verify the information in the flow chart.

Musa has denied the allegations linking him with Chia, who was detained and charged with money laundering by trying to smuggle S$16 million into Malaysia.

Following Chia’s arrest in Hong Kong, investigators got the ICAC to freeze his bank accounts for up to three years.

Sarawak Report also claimed that an instruction to forward US$22.4 million from the lawyer’s account to Musa’s account had been frozen together with the money when the ICAC investigators moved in.

However, the three-year statutory period on investigations expired late last year and the money is now believed to have been accessed by the account holders, it said.

The website blamed the collapse of the case and the subsequent release of all the money to Musa and his collaborators, on Attorney-General Abdul Gani Patail’s (left) refusal to sign a cooperation agreement on the investigation.

It alleged that Abdul Gani, who has close family connections with Musa’s family, has been protecting the latter and had blocked his office from pressing charges.

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‘US$30mil held on trust for Musa Aman’
Apr 16, 2012 – Malaysiakini

“Hold On Trust For Aman” – More Devastating Evidence From The ICAC Investigation!

Nominee – Lawyer Richard Christopher Barnes was holding tens of millions of dollars in a Hong Kong bank account “in trust” for his client Musa Aman, before it was forwarded to a UBS Zurich account in the Chief Minister’s own name!

A multi-million US dollar account, opened in the name of Richard Christopher Barnes with the Swiss Bank UBS in Hong Kong, was operating under written instructions that the money was to be held in trust for Musa Aman, according to evidence gained from the Hong Kong authorities.

A letter, dated 25th May 2007 and now in the possession of the Hong Kong Independent Commission Against Corruption (ICAC), stated the account should “hold [the money] on trust for Aman”.

Investigators noted that on 31st May 2008 that account contained USD 29.6 million!

Flow chart to Musa’s own Zurich account!

A key flow chart, compiled by the ICAC, shows a money trail leading from timber kickbacks to Musa Aman’s own personal bank account with UBS in Zurich!

Barnes, a Sabah lawyer, was believed to be acting as a nominee for Musa Aman. The information on his key account relating to the Chief Minister, UBS A/C231117, forms part of a flow chart analysis, compiled by ICAC investigators, who were tracing the money flowing in and out of the Hong Kong bank accounts controlled by one of Musa’s other known side-kicks, Michael Chia (Chia Tien Foh).

Chia had had been arrested in the city-state while attempting to smuggle SG$16million in cash to Malaysia, sparking a major money laundering investigation.

A parallel investigation was undertaken by Malaysia’s Anti-Corruption Commission (MACC). However we have learnt that inter-country cooperation was blocked by Musa’s close family contact, the Attorney General, Abdul Gani.

The ICAC flow chart (below) illustrates how money was coming into Chia’s accounts from companies related to timber production in Sabah and flowing out to accounts being managed on behalf of Chief Minister, Musa Aman, including the one in the name of Richard Christopher Barnes.

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“Hold On Trust For Aman” – More Devastating Evidence From The ICAC Investigation!
April 15th, 2012 – Sarawak Report

Kong Cho Ha doing all he can to cover up for PKFZ culprits

Today’s headlines on The Sun revealed that Port Klang Authority (PKA) has officially written to the Bar Council less than 2 weeks ago to withdraw the complaint against Rashid Asari & Co in a conflict of interest case when preparing the sale and purchase agreements on behalf of PKA for the PKFZ project.

The breach of professional ethics was first revealed by the special position audit carried out by PriceWaterhouse Coopers, commissioned by the then Transport Minister, Datuk Seri Ong Tee Keat.

The Public Accounts Committee which took some 6 months to complete the follow up investigations endorsed the findings and made recommendations for those found in breach to be appropriately prosecuted.

Datuk Lee Hwa Beng who was the then PKA chairman had duly carried out his duties to file the necessary complaints against Rashid Asari & Co with the Bar Council.

However under the new Minister, Datuk Seri Kong Cho Ha and new PKA chairman, Datuk Teh Kim Poh, they have conspired to reverse the decision as well as many other decisions which were taken previously by PKA.

Kong also withdrew all litigation against Kuala Dimensi

In addition to the above, PKA has also decided to withdraw all civil litigation against Kuala Dimensi Sdn Bhd (KDSB)for failing to carry out as much as RM1.6 billion works – including double billings, ficticious billings for works never carried out and excessive charges to PKA. For example, KDSB was accused of making claims amounting to RM55.8 million and RM83 million for 33kv and civil infrastructure works which have yet to commence. These charges were similarly brought against PKFZ by Lee and Ong.

However at KDSB’s behest, with obvious motives to sweep the entire BN scandal under the carpet, PKA has agreed to proceed to the arbitration instead despite the obvious criminality of the alleged offences. The CEO and shareholder of KDSB was Datuk Seri Tiong King Sing, who is also the Member of Parliament for Bintulu and BN Backbenchers Club.

Datuk Seri Kong has also directed that all payments which are due to KDSB be paid to the latter’s bondholders despite the decision to withold payment by the previous PKA Board. The decision to withold was because of the earlier mentioned legal dispute.

Jeopardising PKA’s own interest

By proceeding to pay KDSB, PKA is basically jeopardising its own interest by making such payments before the Court has decided as to whether such payments are due. The payment amounts to nearly RM700 million annually and has since been paid promptly by the current PKA.

Datuk Seri Kong Cho Ha must answer as to why he has almost single-handedly unravelled all which were in the process of being done to bring to book the guilty parties and to safeguard the interest of Malaysian tax-payers.

As a result of all the past abuse and mismanagement, the Government’s bill for the project will increase to RM12.5 billion. The sheer lack of urgency to resolve the matter by the Minister demonstrates clearly that powerful political interests are being protected at the expense of the Government.

Tony Pua is the DAP MP for PJ Utara

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Kong Cho Ha doing all he can to cover up for PKFZ culprits – Tony
Written by Tony Pua
16 April 2012 – Malaysia Chronicle

Soi Lek’s brother named in graft probe

KUALA LUMPUR, April 15 — Police today confirmed Datuk Seri Dr Chua Soi Lek’s brother is among three people being probed for alleged corruption involving a company called Xian Leng Holdings Bhd.

A special audit of the company recently found that former company director Chua Chong Seng, along with other directors did not follow the group’s accounting procedures in capital expenditure (capex) amounting to RM90.7 million between the firm’s financial years of 2005 and 2008.

The Edge reported that based on a filing with Bursa Malaysia yesterday, the group said the three former directors and substantial shareholders — former managing director Ng Huan Tong, his wife Lim Wan Hong and Chong Seng — were the signatories of cash cheques amounting to RM85.7 million given out under questionable circumstances to pay four contractors for the construction of fish ponds. The remaining RM5 million was paid out to 52 contractors.

Federal CCID chief Datuk Wira Syed Ismail Syed Azizan confirmed that a police report had been lodged on the matter last Friday, and that an investigation is being carried out.

“We have received the report, we will look into and decide the next course of action,” the Syed Ismail told The Malaysian Insider.

In its note to Bursa Malaysia yesterday, Xian Leng had highlighted the irregularities involving the dubious cash withdrawals.

“The RM85.7 million [out of the total RM90.7 million capex] paid to the four contractors was made under questionable circumstances. The bulk of the payments were made via cash cheques and there was a lack of corroborative evidence showing that the amount was paid to and/or received by the contractors.

“The issuance of cash cheques for such large sums of money is a departure from the procedures prescribed by the group’s finance manual,” said Xian Leng after submitting the audit by PricewaterhouseCoopers Advisory Services Sdn Bhd to the exchange.

As a result of not being able to account for the capex, Xian Leng’s fixed assets have been impaired by RM51.9 million to date.

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Soi Lek’s brother named in graft probe
April 15, 2012 – TMI

Gun Begins to Smoke in Malaysian Sub Scandal

Money may have been funneled to UMNO officials through Hong Kong incorporated company

French investigating magistrates probing the US$1.2 billion sale of submarines to the Malaysian Defense Ministry are targeting, among other things, a Hong Kong-based company called Terasasi (Hong Kong) Ltd., whose principal officers are Prime Minister Najib Tun Razak’s close friend and the friend’s father.

Investigators believe that at least some of the €36 million funneled through Terasasi ended up in the pockets of Najib, who was Malaysia’s defense minister and deputy prime minister when the two Scorpene submarines were purchased from Thales International or Thint Asia. The state-owned defense giant DCN, later known as DCNS, and Thales established a joint company named Armaris to manufacture the submarines in 2002.

The two Armaris Scorpenes, named for the first prime minister of Malaysia, Tunku Abdul Rahman, and Najib’s father, Tun Abdul Razak, are on duty in Malaysian waters.

Abdul Razak Baginda, the former head of a Malaysian think tank who was at the center of a 2006 investigation into the death of Mongolian translator and party girl Altantuya Shaariibuu, is listed as one of the two directors of the company, which was previously incorporated on June 28, 2002 as Kinabalu Advisory and Support Services Ltd according to the Hong Kong Companies Registry. The other director is Abdul Malim Baginda, Baginda’s father.

The Terasasi offices are located on the 19th floor of an office at 3 Lockhart Road in the Wan Chai district of Hong Kong. There is no indication in Hong Kong government records of what Terasasi’s business is. It is only listed as a “local company.” However, French authorities say Terasasi apparently received regular payments from Thint Asia. One payment was for €360,000 accompanied with a handwritten note saying “Razak wants it to be paid quickly.”

The magistrates have documents that show that the money was funneled from Thint Asia to Terasasi — €3 million of it when Terasasi was still domiciled in Malaysia, and €33 million after it was incorporated in Hong Kong. There is no indication at this point where the money went. French investigators, however, theorize that it was part of €146 million that may have been funneled to officials of the United Malays National Organization and Najib, who traveled with Abdul Razak Baginda several times to France as defense minister at the time the Malaysians purchased the submarines from DCNS.

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Gun Begins to Smoke in Malaysian Sub Scandal
Written by John Berthelsen
05 April 2012 – Asia Sentinel

PKR accuses NFCorp directors of cashing out

KUALA LUMPUR, April 5 — PKR today accused National Feedlot Corporation (NFCorp) directors of disposing of property worth RM4 million which it alleges was bought by leveraging on the RM250 million federal loan to run the National Feedlot Centre (NFC).

Strategic director Rafizi Ramli alleged that the directors, who are Datuk Seri Shahrizat Abdul Jalil’s family members, are cashing out assets prior to winding down other related companies now that the government is inviting bids to take over the cattle farming scheme.

Rafizi (picture) told reporters the NFCorp owners are now finalising the sale of three office units in Sri Hartamas for RM3 million, which he claimed was at a discount of 25 per cent from their market value.

“This is the sign of a distressed sale. At first they were on a shopping spree. Now they are on a selling spree,” he told reporters, referring to assets worth over RM75 million financed by the RM250 million meant for the NFC.

Putrajaya said on March 27 it will invite bids to take over the cattle farming scheme from NFCorp, whose chairman Datuk Seri Mohamad Salleh Ismail is Shahrizat’s husband, is facing criminal charges for abusing RM49 million worth of public funds in the scandal.

Rafizi alleged today the Sri Hartamas units were purchased by the Wanita Umno chief’s family by making huge deposits using NFC’s millions to leverage personal loans.

They are now being sold to a company here called Insun Developments Sdn Bhd, he claimed.

Rafizi added the loans for these offices were given by the same bankwhich he said on March 7 had financed another eight offices worth RM12million in the luxurious KL Eco City development.

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PKR accuses NFCorp directors of cashing out
April 05, 2012 – TMI

Dr M a parallel PM?

If MCA, which is a just a sidekick to Umno is worth RM4 billion, then Umno must be worth five times that – let’s say RM20 billion.

COMMENT

Why is former prime minister Dr Mahathir Mohamad, who is well into his 80s, which, theoretically speaking, places him in the twilight zone, still at it?

It’s as though he is the parallel prime minister running this country.

The fact that he does what he does quite consistently suggests that current Prime Minister Najib Tun Razak, despite his social media savviness, requires hand-holding to lead this nation.

It also suggests that despite his external popularity, Najib lacks substance to run this country.

So if you asked me whether Najib can reform Umno, the answer is no. How can he dismantle a system on which Umno survives?

That will be the end of Umno civilisation. Umno’s civilisation lives on a system of tender-preneurship.

Every level of Umno leadership looks up at the party being able to give out tenders so that Umno is worth at least five times the worth of MCA.

If MCA is rotten, Umno should also be five times as rotten.

Mahathir seems to concur. He once suggested that Umno is rotten to the core. But of late he has been singing praises about Umno.

Mahathir wants privileges

Don’t forget he also once declared that the government is corrupt from top to bottom. When he spoke of that kind of corruption at a lucheon with former ministers, he included the current prime minister.

But now Mahathir is saying good things about the government and is suggesting that voters re-elect the party irrespective of the quality of people who make it up.

How can a party not be corrupt if the people making it up are corrupt?

The fact is Mahathir is a despotic ruler. He eschews democracy. He uses democracy to achieve the position of power.

Once ensconced in power, Mahathir pursued only one aim – conferment of privileges on himself.

His recent remarks about the futility of questioning what happened to MAS in the 1990s, is symptomatic of the man, pursuing only one goal in his life – the entrenchment of privileges.

Privilege itself is anathema to democracy which is essentially about egalitarianism.

Mahathir doesn’t want anything egalitarian. He wants privileges in the form of selected captains of industry, in the form of protection of his children and friends doing business and so forth.

The most damaging to us, is his insistence now, to perpetuate the rule of a corrupt and deceitful government led by a corrupt Umno and Barisan Nasional.

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Dr M a parallel PM?
Mohd Ariff Sabri Aziz
April 2, 2012 – FMT